Australia’s ban on credit and debit card surcharges took effect on October 1, 2026, shifting card processing costs from consumers to businesses and saving shoppers an estimated $1.6 billion annually, sbs.com.au reported. The Reserve Bank of Australia rules prohibit extra fees for eftpos, Visa, and Mastercard payments, though fresh frustrations emerged within hours as shoppers encountered new platform and service fees online.
Reserve Bank Bans Card Surcharges Across Major Networks
The Reserve Bank of Australia implemented sweeping reforms prohibiting businesses from charging customers extra for paying by card. The change covers eftpos, Visa, and Mastercard transactions, including credit, debit, and prepaid cards.
The RBA’s Consumer Payments Survey for 2025 showed cash payments dropped from 69 per cent of in-person transactions in 2007 to roughly 19 per cent in 2025. Data from the central bank indicated about one in three hospitality businesses applied a card surcharge during the 2023-24 financial year. The RBA estimated that removing these charges will make digital payments simpler and more transparent.
Consumers Encounter New Platform and Booking Fees at Checkout
Shoppers on social media questioned new charges appearing at online checkouts almost immediately after the ban began. sbs.com.au reported that consumers queried fees described as platform or service charges, prompting concerns about whether businesses were replacing card surcharges with alternative fees.
The Australian Competition and Consumer Commission stated it was aware of concerns regarding platform, booking, or service fees introduced since the ban. Under Australian Consumer Law, businesses cannot mislead customers about prices or mandatory fees that can be calculated in advance.
Businesses Face Difficult Decisions Over Absorbing Processing Costs
Business owners grappled with how to manage processing costs that they can no longer pass directly to customers. David Bitton, owner of the Bitton Rose Bay cafe in Sydney, estimated the surcharge ban could cost his business up to $40,000, given that more than 90 per cent of his sales use cards. Bitton told sbs.com.au he is increasing his weekend surcharge from 10 to 12 per cent instead of raising menu prices.
Salon owner Sheridan Shaw said she was forced to increase her pricing because absorbing the cost would harm her business, abc.net.au reported. Australian Hairdressing Council chief executive Fiona Beamish noted the challenge businesses face in communicating price rises to clients who expect to avoid surcharges. Meanwhile, Australian Chamber of Commerce and Industry chief executive Andrew McKellar argued that small businesses will not save money under the reform because processing costs remain.
Tax Office Moves to Ban Credit Card Payments For Tax Bills
The Australian Taxation Office announced a plan to ban credit card transactions for tax bill payments starting November 30. The agency stated it was not appropriate for the cost of credit card merchant fees to be transferred to the community, noting that 60 per cent of credit card tax charges in the 2024-25 financial year came from large organisations.
One Nation leader Pauline Hanson and teal MP Allegra Spender made a unified demand for the tax office to reverse the ban, smh.com.au reported. Spender argued on Nine’s Today show that credit card companies charge too much, which ultimately burdens taxpayers. Hanson called the move an unintended consequence of government policy, while Opposition Leader Angus Taylor described the government as insensitive.
Travel Industry and Construction Sectors Manage Complex Payment Rules
Travel companies and construction suppliers adjusted to the removal of card surcharges under complex payment frameworks. Planetdwellers co-founder Barry Warner said the travel industry faces a critical reckoning because travel agents operating on low commissions are forced to absorb transaction costs, karryon.com.au reported. LUXE by itravel advisor Geoff Currie suggested building card charges into total package costs at the time of quoting.
In the construction sector, Simon Croft noted that builders and merchants risk having payment processing costs embedded into underlying prices for building materials and services. Because residential construction relies on fewer, higher-value transactions made via bank transfers, Croft warned that absorbed costs could add pressure to housing affordability.
Frequently Asked Questions About the Card Surcharge Ban
What payment networks are covered by the RBA surcharge ban?
The Reserve Bank of Australia rules cover eftpos, Visa, and Mastercard debit, prepaid, and credit cards.
Are weekend restaurant surcharges and booking fees still allowed?
Yes. The RBA confirmed that weekend and public holiday hospitality surcharges, booking fees, and service fees are permitted as long as they are not card payment surcharges by another name.
What should consumers do if they suspect they were wrongly charged a card fee?
Consumers who believe they have been charged a card surcharge should contact the business directly to query the amount paid and seek a resolution.